Now i know this has prob been covered before, but i'm curious on what people are paying on their mortgages?

I'd just like to know the amount of your monthly payment (repayment mortgages ONLY) and how much the purchase price of your property was (let's keep it below £225,000!!) over 25 years.

i.e.

Purchase price £215,000
Mortgage pm £1200

Ta

 

Why repayment only?

If this is your first mortgage then interest only is a viable option for the first two years, whilst you take advantage of the capital appreciation.

 

Nope, this'll be my second Rich.

Bought the place i'm in now with *Anna* 4 years ago nearly

Time to move onwards and sidewards

 

 

Sorry to sound thick, but would this be applicable if its your 3rd mortgage??

 

I don't get why you would bother doing interest only tho - I really don't. Great, so the "Payments" each month would be cheaper, but after two years, you STILL owe the full ammount on the property, and you've paid an extra 2 years of interest. Whoopee.

I went for repayment purely cos as soon as I start paying I start paying the lump sum off aswell. Plus the nature of decreasing mortgage repayments means that in 2years when you will most likely remmortgage (most go for a 2yr fixed rate) you remortgage for less, so the interest will also be less - ever decreasing.....

I haven't started mine yet (yet to move into property - fooking solicitors dragging shit out) but when I do I am told my mortgage repayments will be £454 per month (£76k mortgage) - tho due to it being part rent part buy I also have to pay £154 pm in rent

 

Thrush, does that mean you will be paying £608 per month??? just seems loads on 76k

Smudge

 

NO, you;ve misread what I typed my Mortgage is for £76k, and repayments to the mortgage lender on that £76k is £454. The house itself is owned by a private housing company, and the property is offered on a part rent part buy basis. The property value is £160k - I am buying 50% of it from them (£80k - £76k loan from bank, £4k of my money) As a result, I have to pay £154 in rent pm on the remaining 50% owned by the company. So mortgage on one half (that I own) and rent on the other half (that I don't own)

 

It would make no difference whether its was your 1st, 3rd or 8th mortgage, if you want Interest Only its easily enough arranged.

 

Smudge

 

Smudge - It's all right - not many people understand it if they haven't done it themselves.... Reason I've done it is I simply cannot afford a nice 2 bed semi for £160k on my own. And I can't get a mortgage from anyone that will have repayments at about £600 a month (as the borrowing ammount is too high for what I qualify for)

So it was either do it this way, and get a nice house that I think I actually want to stay in, or get a shitty tower block flat that I would hate and not want ot stay in.... I chose the house! Gonna cost a tad more, and I don't own 100% of it (yet) but at least it's a house, with stairs, a real front door and a garden (albeit a small one!)

 

140k
£680per month
over 35 years

was fixed at about 5.04% i think

 

Fair play mate. Me and g/f were in the same position 18 months ago, had to geta 100% morgage, not ideal but you do what you have yo do to get a foot on the ladder!!

Smudge

 

I actually wanted a 100% mortgage, but they only gave me 95%. I had/have £19k saved up, so wanted 100% of £80k to borrow, so I could spend about £2-£3k on solicitors/fee's etc, and another coupld grand on buying shit for house and still have £15k or so to keep safe for any unexpected needs/emergencies etc.... But I had to kick in another £4k as deposit so will only have £10k in savings left after buying this place!!!!

 

Put simply, the cost differential.

When my brother bought his flat, it was £225k, but in the year he's had it on an interest only mortgage, the capital appreciation assuming market value is a nice £20k in a year. He's able to equity release to fund another property in 12 months time, the income from which more than covers the extra on his mortgage on repayment.

Depends whether you have an issue with borrrowing money at a preferential rate or whether you want to give the bak back the money as quickly as possible. Consider also the difference between a £200k mortgage (that's after a 22k deposit plus fees, sd etc) on IO or repayment and you'll see why.

I have a mate who doesn't understand it either. He's saved up some money over the past year and wants to give it to the bank to help pay off the mortgage. That, as I explained to him, is just idiotic financing.

 

borrowing 135k over 30 years is just over 700 pcm

 

I borrowed £100k over 20 years on a repayment mortgage and its £697.27p. (fixed rate for 7 years)

This was on a purchase price of £209,000 5 years ago.

Steve.